Self cert remortgage - Trapped !! need advice

ACG

It sounds like his investment was put in as a drectors loan.

He currently takes no wage as such but gets his directors loan back - meaning he doesnt pay income tax on his "wage". All perfectly legit but from a mortgage lenders point of view not much use.

So to get around it, the company now needs to stop paying the loan back and start paying the director a wage.

standingonmyown2feet

Thats perfectly correct, In the first few years we were very cash positive with the business. SO geting a self cert on the book work was not a problem the business was v profitable.

As the recession bit, we have had to fund the company personally and are now only taking out a very small amount back out of the business in order to "survive" personally and not send the company into turmoil with unnecessary stress.

The ultimate problem has arisen in that the banks are being arsy with our company, they dont & wont loan to small businesses, and they have MADE us turn our overdraft into a loan that they want back erm, well tomorrow if they had it their way.

So as a consequence personally we are unable to take any kind of decent money out of the business whilst the banks (natwest) get back their money straight away. They have been very bullish and bullying and threatening too but thats a different story, they shut our personal and business aaccounts in Nov when we refused to turn the odraft into a loan !!.

Now the problem comes that our own personal mortgage is due to come out of its fixed period in 2 months time and because we are not taking a vast amount of money out of the business we can't move to a new lender (as I see it) and our current lender has increased the rates available for self cert mortages, so whilst everybody elses rates have gone down in alignment with the bank of England base rate, anybody on a self cert is.....screwed

That must be an awful lot of people living in london that are on interest only that will be screwed too....(we dont live in london BTW, we live in the midlands)

Thrugelmir

standingonmyown2feet wrote: »

So as a consequence personally we are unable to take any kind of decent money out of the business whilst the banks (natwest) get back their money straight away.

Why shouldn't they? The business is loss making. So why should the bank subsidise your lifestyle.

Life is all about choice. Kids, homes, cars , holidays etc. So we all have to take individual responsibility for how we manage our money.
Rather than the addiction to borrow now pay later mentality we have lived in for a decade or so.

chewback

Loss making? That didn't stop us lending to the banks did it?

The_J

RBS made a profit of £10bn (£10,000,000,000) in 2007.

I'm not saying I agree with the bailout of the banks, or whether that £10bn was fairly earned but comparing a sole trader to an international bank is a little crazy.

chewback

He has cost me a lot less than RBS and all the other bank shysters. They should have been left go under.

The_J

I doubt it, the collapse of the banking system would probably have resulted in the collapse of society which I would rank up there with losing quite a lot.

Ultimately, it was lots of little people like you or I or even the original poster who borrowed more than they could afford and didn't pay it back. The banks allowed it to happen and share responsibility but to suggest it was entirely their fault is a gross misunderstanding of the fiat banking system that we have.

Also, the taxpayer picked up the banks we have on the cheap. If we allow them to return to profitability (by allowing them to pay their most profitable employees with sizable bonuses which enables them to attract the top performers) then we will be able to sell the taxpayers stake at a considerable profit and reap the profits in the mean time as a majority shareholder.

No-one seems to understand that but that's because the media don't understand it. After all, if you can't work in the private sector, work for the public sector, if you can't work in the public sector, teach, if you can't teach become a journalist, if you can't become a journalist... join the police. What's worrying is that the public's opinion is so heavily swayed by the media, the sheeple are brain dead. That's why we always vote in the same Lib/Lab/Con party.